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Kitchener-Waterloo: Another Hot Ontario Market for 2017

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Kitchener-Waterloo: Another Hot Ontario Market for 2017
3 min. read

A pattern has been emerging in Ontario since the start of 2017, and the Kitchener real estate market has proven to be no exception to it. As people are looking for more and more affordable ways to stay or move to Ontario, Toronto is often proving far too expensive, with the smaller communities throughout the province experiencing growth in their real estate markets as a result. This trend is clearly visible when looking at the March statistics for the Kitchener housing market.

Overall, throughout the Kitchener-Waterloo area in March there were 729 homes sold in the region. This figure broke the previous record for home sales in the month of March, and outstripped last year’s figure by 24.2%. Local experts were amazed with this figure, as throughout the history of recording home sales in the region, more than 700 home sales in a month has only occurred three other times. The growth was especially prominent in the condo market, where 164 sales meant a 49.1% year-over-year increase.

Price Jumps up as Sales Soar

While not a surprise to anyone used to watching the ebb and flow of real estate trends, those in the market for a deal in Kitchener may have been unhappy to see the sharp climb in prices that accompanied the increased demand for homes in the area. Overall prices climbed to a new average of $493,226, a 32.3% growth rate when compared to last year. Interestingly, however, although the market for Kitchener condos saw the majority of the overall sales growth, prices there did not climb quite as steeply as in the detached home segment. The average condo price climbed to $265,524 in March, a 25.4% gain over last year, while detached, single-family homes in Kitchener rose 32.3% to a new average sale price of $583,144.

Low Supply the Story

Kitchener-Waterloo and many of the neighboring cities are all suffering from extremely low home availability, one of the many factors driving prices sky-high. The overall activity levels have certainly been accompanied by an increase in new listings as people attempt to capitalize on the hot market. The 844 new listings in March beat the five-year average by more than 40 homes. Despite this, the total number of overall listings, 434, is more than 1,000 homes less than the five-year average supply for March.

Kitchener-Waterloo is an extremely lucrative market for sellers at the moment. For buyers looking to get into the region, it may represent an opportunity to do so before the prices climb even higher and supply tightens even more. However, the current nature of the market means that buyers need to be committed and ready to move when they find their dream home.

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